Court: Woman Can Keep The Mortgage Modification Bank Of America Said Was An Error

What happens when Bank of America offers a customer a mortgage modification then tries to foreclose on her home anyway? In the case of a New Jersey woman who was paying her mortgage when BofA claimed her modification offer had been an error, a court took her side, allowing her to keep her home.

The appeals court said it was puzzled why the lender would even try to foreclose on the woman, because she “unlike many, is actually paying her mortgage,” reports the Associated Press.

Sylvia made payments on her $591,913 mortgage as part of a loan modification program that Bank of America said she qualified for in March 2010.

Despite her consistent, timely payments, the bank claimed the letter of acceptance into the modification program was an error and that she was never supposed to get a permanent modification.

Too bad, said the court, as to “eventually pull the rug out” after having debtors make payments with the promise of a modification bordered on being “unconscionable.”

Nothing has changed. This woman always had commonsense. BoA still has none.

What’s different is that a appeals judge/panel with commonsense has been encountered.

Now if only we can get all those cases in front of this appeals court where people are foreclosed on because the bank rep told them they first had to miss 3 payments in a row to qualify for a modification, and then lost their home because the bank treated the 3 missed payments as a default.

I honestly believe that the rating companies are doing vindictive rating now. They rated so many Alt A CDO as AAA that quite obviously were not AAA, then got called on it. Wasn’t it the Dodd-Frank bill that said these ratings can’t be used in many situations? I think the rating companies are now downgrading anything unpopular to make it appear that they are doing their jobs. Just like many banks have so tightened loan requirements. Both are trying to say, “see…see, we know what we’re doing..don’t blame us”. There is so much BS, farmers could shovel it and save on chemicals.

Now, here Moody’s has listed their ratings on BofA-Citi-GS, but if I were betting on long term success, I’d bet any of those banks before I’d bet on Moody’s.

At what point does someone at BOA actually just say “we suck at this – let’s get out of banking and try something where our customer service knowledge could be more useful… like offering logistical support to various dictators and cladestine terrorist organizations around the globe”.

I remember reading an article where this is SOP for BofA. Do a “trial” modification that keeps people paying for another few months, and throw them out anyway. It’s a scam to bleed more money before foreclosing.